6.4 Self-Test Suppose that the market interest rate is 4% and then drops overnight to 2%. Calculate the present values of the 2.25%, 3-year bond and of the 2.25%, 30-year bond both before and after this change in interest rates. Assume annual coupon payments. Confirm that your answers correspond with Figure 6.5. Use your financial calculator or a spreadsheet. You can find a box on bond pricing using Excel later in this chapter. 6.4 Self-Test Suppose that the market interest rate is 4% and then drops overnight to 2%. Calculate the present values of the 2.25%, 3-year bond and of the 2.25%, 30-year bond both before and after this change in interest rates. Assume annual coupon payments. Confirm that your answers correspond with Figure 6.5. Use your financial calculator or a spreadsheet. You can find a box on bond pricing using Excel later in this chapter